SGX Market Updates

FTSE ST Small Cap Index’s 5 Best-Yielding Stocks Average 7.4% Yield


PUBLISHED ON |

02 May 2019

  • The 51-member FTSE ST Small Cap Index tracks the performance of small-cap companies that pass size, free float and liquidity screens and trade on SGX Mainboard. As the Index has a significant Real Estate weighting – with 19 REIT constituents – it maintains a relatively high average dividend indicated yield of about 4.5%, above the STI’s 3.9% yield.

  • Of the Index’s 32 non-REIT constituents, 12 have indicated yields of above 4%. Among these 12, the 5 best-yielding stocks are: Duty Free (9.3%), Delong (9.2%), SIIC Environment (6.3%), UMS (6.2%), and QAF (6.0%). They average an indicated yield of 7.4%.

  • Among the 12 best-yielding stocks, the 5 best performers in the YTD were: QAF (+43.6%), UMS (+28.1%), Chip Eng Seng (+20.5%), Bumitama Agri (+15.3%) and Lian Beng Group (+15.1%). They have averaged a YTD total return of 24.5%.




The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index representing the performance of small-capitalised companies, which pass size, free float and liquidity screens and trade on SGX Mainboard. The Index comprises 51 constituents with a combined market capitalisation of about S$40 billion, ranging from S$63 million to over S$2 billion. More broadly, beyond the Index are approximately 200 stocks listed on SGX that fall within this market capitalisation range.

The 10 largest capitalised constituents of the FTSE ST Small Cap Index account for more than a third of the Index’s weighting, and comprise six Real Estate Investment Trusts (REITs), two consumer stocks, one healthcare play, and one financial services provider. Given the significant Real Estate weighting in the Index – there are a total of 19 REIT constituents – it maintains a relatively high average dividend indicated yield of about 4.5%, above the benchmark Straits Times Index’s (STI) 3.9% yield.

Excluding REITs and business trusts, the Index has 32 non-REIT constituents, with dividend indicated yields ranging from below 1% to above 9%. Of these 32, 12 stocks have indicated yields of above 4%. Among the 12, the five best-yielding Index constituents are: Duty Free International (9.3%), Delong Holdings (9.2%), SIIC Environment (6.3%), UMS Holdings (6.2%), and QAF Ltd (6.0%). These five have averaged an indicated yield of 7.4%.

The table below details the 12 non-REIT constituents of the FTSE ST Small Cap Index with yields above 4.0%, sorted by dividend indicated yield.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
Dividend
Ind Yield
%
P/E
(x)
DUTY FREE INTL 5SO 234 3.9 -1.6 -34.9 9.3 15.6
DELONG HOLDINGS BQO 673 -3.2 58.3 2074.1 9.2 2.0
SIIC ENVIRONMENT BHK 808 12.7 -26.6 -53.5 6.3 7.4
UMS HOLDINGS 558 392 28.1 -28.0 84.0 6.2 9.1
QAF LTD Q01 483 43.6 -14.9 -11.5 6.0 59.1
BUMITAMA AGRI P8Z 1,242 15.3 3.4 1.0 5.6 11.9
HONG LEONG FINANCE S41 1,242 9.4 4.2 32.1 5.4 10.5
CHIP ENG SENG C29 498 20.5 -17.1 31.0 5.1 8.0
METRO HOLDINGS M01 856 2.0 -8.0 19.5 4.9 20.1
CHINA SUNSINE CHEMICAL CH8 570 -7.9 -21.4 232.1 4.7 4.4
CENTURION CORP OU8 366 4.8 -2.3 34.9 4.6 4.6
LIAN BENG GROUP L03 262 15.1 -8.7 27.0 4.3 4.6
Average 12.0 -5.2 203.0 5.9 13.1

Source: Bloomberg & StockFacts (data as of 30 April 2019)



Among these 12 best-yielding stocks, the 5 best performers in the 2019 year-to-date were: QAF (+43.6%), UMS (+28.1%), Chip Eng Seng (+20.5%), Bumitama Agri (+15.3%) and Lian Beng Group (+15.1%). The 5 have averaged a YTD total return of 24.5%.

The table below details the 12 non-REIT constituents of the FTSE ST Small Cap Index with yields above 4.0%, sorted by YTD total return.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
Dividend
Ind Yield
%
P/E
(x)
QAF LTD Q01 483 43.6 -14.9 -11.5 6.0 59.1
UMS HOLDINGS 558 392 28.1 -28.0 84.0 6.2 9.1
CHIP ENG SENG C29 498 20.5 -17.1 31.0 5.1 8.0
BUMITAMA AGRI P8Z 1,242 15.3 3.4 1.0 5.6 11.9
LIAN BENG GROUP L03 262 15.1 -8.7 27.0 4.3 4.6
SIIC ENVIRONMENT BHK 808 12.7 -26.6 -53.5 6.3 7.4
HONG LEONG FINANCE S41 1,242 9.4 4.2 32.1 5.4 10.5
CENTURION CORP OU8 366 4.8 -2.3 34.9 4.6 4.6
DUTY FREE INTL 5SO 234 3.9 -1.6 -34.9 9.3 15.6
METRO HOLDINGS M01 856 2.0 -8.0 19.5 4.9 20.1
DELONG HOLDINGS BQO 673 -3.2 58.3 2074.1 9.2 2.0
CHINA SUNSINE CHEMICAL CH8 570 -7.9 -21.4 232.1 4.7 4.4
Average 12.0 -5.2 203.0 5.9 13.1

Source: Bloomberg & StockFacts (data as of 30 April 2019)







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